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FTR’s Trucking Conditions Index for July Reflects Some Improvement in Market Prospects

09.19.16 | FTR



FTR’s Trucking Conditions Index (TCI) for July received a bounce to a reading of 5.99, reflecting improved market prospects due to moderate economic growth and a regulatory agenda that will tighten capacity utilization. Building regulatory drag over the next eighteen months should increase pricing and margins for fleets that have capacity. TCI readings for the balance of this year and into early 2017 should remain near the current level.

Details of the July TCI are found in the September issue of FTR’s Trucking Update, published August 30. The ‘Notes by the Dashboard Light’ commentary in the current issue gives an update from the regulatory front. Along with the TCI and ‘Notes by the Dashboard Light,’ Trucking Update includes data and analysis on load volumes, the capacity environment, rates, costs, and the truck driver situation.


Click here to view the latest release and an interactive graph of the TCI >


Jonathan Starks, Chief Operating Officer at FTR, commented that, “The freight market is doing slightly better than just treading water, but there is still a disconnect between activity in the spot and contract markets. This is a result of the slow growth environment that we are in right now. You use your contract carriers whenever you can. There just hasn’t been enough extra freight to spill over into the spot markets. Plus, shippers were able to use the big drops in spot rates to help put pressure on on their contract carriers. I believe that those conditions will soon be turning, especially for van freight. Van loads on the load boards are up this summer, and capacity has noticeably tightened. It isn’t extremely tight, but compared to last year it is a welcome relief for carriers. That should soon take root in contract rates, especially as shippers and carriers prepare for their 2017 negotiations. One note of caution is in the flatbed segment. The big reductions in oilfield activity has continued to put too much carrier capacity back into the spot market, and pricing is still weak for this segment. Until oil prices move higher or housing and business investment rally, the long-haul flatbed market is going to continue to struggle for volumes and rates.”



Trucking Update, published monthly, is part of FTR’s Freight Focus and reports data that directly impacts the activity and profitability of truck fleets. As part of Trucking Update, FTR forecasts expected trends in this data and the probable short and long term consequences. For more information on how to subscribe to Trucking Update, or other publications within FTR's Freight Focus, send an email to [email protected]  or call (888) 988-1699 ext. 1.

For more than two decades, FTR has been the thought leader in freight transportation forecasting in North America. The company’s national award-winning forecasters collect and analyze all data likely to impact freight movement, issuing consistently reliable reports for trucking, rail, and intermodal transportation as well as providing demand analysis for commercial vehicle and railcar. FTR’s forecasting and specially designed reports have resulted in advanced planning and cost-savings for companies throughout the transportation sector.
 
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